that doesn't eliminate need for loading states at all, and is already solved by things like react server components or remix (see waterfall removal graphic
https://remix.run/)
i think this discussion is confusing the use of sqlite in local-first apps, where there's no loading states because the database is in the browser. you can use sqlite on your server, but you still need a "loading state".
even with postgres, if your data and server are colocated, the time between the 2 is already almost 0
now maybe the argument is your servers are deployed globally each with an sqlite db. that's not all that different from global postgres read replicas